Answer:
purchase the machine because the expected rate of return exceeds the interest rate.
Explanation:
Given the cost of machine = $2000
If the firm borrows fund at an interest rate of 10% to buy the machine,
Interest paid on the cost of machine = 10% of $200
= 10/100 × $2000
= $200
Total amount that must be paid back for the machine by the firm = actual cost of machine + interest rate
= $2000 + $200
= $2,200
Since the additional revenue generated from the machine after all operating cost = $2,300
Profit accrued by the firm = Revenue - (actual cost of machine + interest)
Profit accrued by the firm = $2,300-$2200
Profit accrued by the firm on the machine = $100
Based on the profit margin, it can be concluded that the firm can purchase the machine because the expected rate of return exceeds the interest rate.
Note that the expected rate of return is $300 (i.e $2300 - $2000) and the interest rate of is $200 (i.e 10% of $2000)
Answer:
1 (a)
Since p = 10 - Q,
Revenue = p × Q=10Q - Q2
Hence, MR = 10 - 2Q.
MC is given fixed at 4.
Demand function is Q = 10 - p.
Plotting all these values in graph attached picture, we get
1 (b)
The monopolist will yield where MR = MC. So,
10 - 2Q = 4
Q = 3.
At this quantity, P = 7.
1 (c)
Consumer Surplus = Area of Triangle ABC = 0.5 × 3 × 3 = 4.5
Producer Surplus = Area of Rectangle ABEF = 3 × 3 = 9
2 (a)
Since the price is now P = MC = 4, this means
Q = 10 – 4 = 6.
2 (b)
The consumer surplus in this case would be = 0.5 × 6 × 6 = 18
The producer surplus will be zero.
2 (c)
Deadweight Loss = Total Surplus in Case B - Total Surplus in Case A
18 - 13.5 = 4.5
Answer:
d. salary
Explanation:
There are many different sources of income. Usually, most of an adult's income comes from salary.
hope it helps:)
mark brainliest!
Answer:
No, the tax treatment will not be same.
All the amounts received by Billy, are during the course of business, and are related to the damages caused to business, and to him personally, and under tax these all amounts are tax free:
Amount received for personal injury of $100,000 is tax free as is related to expense of his personal recovery.
The amount of $50,000 and $15,000 though received from different sources but is for the same purpose of loss of income and destruction caused to business.
Whereas, amber is an employee, she is not the owner and therefore, all of the benefits received from her workplace are taxable.
As the policy was purchased by the employer and therefore, any amount received from such policy by amber will be taxable as a perquisite received from employer.
Answer:A merger
Explanation:
This is coming of two companies to form a new firm with both companies losing their indentity .
